The Joseph Rowntree Foundation has broadly agreed with the Scottish Government's plans on the private rented sector, but called for VAT cuts on conversions and renovations.

The lobbying group, whose stated aims include supporting "resilient communities where people thrive", replied to the Scottish Private Rented Sector Strategy Group consultation.

Kathleen Kelly signed the consultation form on behalf of the organisation.

She praised the Government's "informed choices", "quality" and "focus on growth and investment".


She said there was a need to plan now for the extra 1.5m under-30 year-olds expected to be renting privately by 2020, and said new supply would need to be balanced with improving customer experience.

And she wrote: "We welcome the focus on the Scottish Government's continued role in brokering relationships between institutional investors and housing providers in order to increase housing supply. There may be scope to consider additional tax/ subsidy incentives for more housing investment, including reducing VAT on renovations and conversions within the existing housing stock. As the current VAT system favours new build housing, which carries a zero rate of VTA, there are trade-offs with this approach. Moves to equalise VAT rates between renovations/ conversions and new build properties might mean charging VAT on new build housing."

She admitted that this would be a "medium-to-long-term option" as it would require consultation.

(NE)